Mladjan Dinkic, head of the G17 Plus Party, said money that would have gone to servicing the debt should instead be used to assist Serbs living in Kosovo. He rejected arguments from other members of the government that abjuring the debt would mean recognizing the breakaway region's unilateral declaration of independence, Blic reported.

"The government is not unanimous on what to do with the debt," Dinkic said. "If we stop servicing it, that does not mean that we renounce our political claims on Serbian sovereignty. If we regain our sovereignty some day, we can continue repaying the debt."

Debt service for Kosovo comes to about $150 million a year. Dinkic called repudiation "the only rational solution," saying it would give Serbia new resources without a tax increase.